diff --git a/cmake/nanobind-config.cmake b/cmake/nanobind-config.cmake
index 8e204d63..78590100 100644
--- a/cmake/nanobind-config.cmake
+++ b/cmake/nanobind-config.cmake
@@ -590,7 +590,7 @@ endfunction()
 # ---------------------------------------------------------------------------
 
 function (nanobind_add_stub name)
-  cmake_parse_arguments(PARSE_ARGV 1 ARG "VERBOSE;INCLUDE_PRIVATE;EXCLUDE_DOCSTRINGS;EXCLUDE_VALUES;INSTALL_TIME;RECURSIVE;EXCLUDE_FROM_ALL" "MODULE;COMPONENT;PATTERN_FILE;OUTPUT_PATH" "PYTHON_PATH;DEPENDS;MARKER_FILE;OUTPUT")
+  cmake_parse_arguments(PARSE_ARGV 1 ARG "VERBOSE;INCLUDE_PRIVATE;EXCLUDE_DOCSTRINGS;EXCLUDE_VALUES;INSTALL_TIME;RECURSIVE;EXCLUDE_FROM_ALL" "MODULE;COMPONENT;PATTERN_FILE;OUTPUT_PATH" "PYTHON_PATH;LIB_PATH;DEPENDS;MARKER_FILE;OUTPUT")
 
   if (EXISTS ${NB_DIR}/src/stubgen.py)
     set(NB_STUBGEN "${NB_DIR}/src/stubgen.py")
@@ -626,6 +626,10 @@ function (nanobind_add_stub name)
     list(APPEND NB_STUBGEN_ARGS -i "${PYTHON_PATH}")
   endforeach()
 
+  foreach (LIB_PATH IN LISTS ARG_LIB_PATH)
+    list(APPEND NB_STUBGEN_ARGS -L "${LIB_PATH}")
+  endforeach()
+
   if (ARG_PATTERN_FILE)
     list(APPEND NB_STUBGEN_ARGS -p "${ARG_PATTERN_FILE}")
   endif()
diff --git a/docs/api_cmake.rst b/docs/api_cmake.rst
index 13b492e5..7def2ee9 100644
--- a/docs/api_cmake.rst
+++ b/docs/api_cmake.rst
@@ -492,6 +492,18 @@ Nanobind's CMake tooling includes a convenience command to interface with the
           generation. Otherwise, generator expressions should not be used.
           Optional.
 
+      * - ``LIB_PATH``
+        - List of search paths that should be considered when searching for
+          shared libraries. This can be useful when the Python module being
+          imported depends on shared libraries that are not in the default
+          search path. On Windows, these directories are added to the DLL search
+          path using ``os.add_dll_directory()``. On Linux, the paths are
+          prepended to the ``LD_LIBRARY_PATH`` environment variable (on macOS,
+          to ``DYLD_LIBRARY_PATH``). The paths are relative to
+          ``CMAKE_CURRENT_BINARY_DIR`` for build-time stub generation and
+          relative to ``CMAKE_INSTALL_PREFIX`` for install-time stub
+          generation. Optional.
+
       * - ``DEPENDS``
         - Any targets listed here will be marked as a dependencies. This should
           generally be used to list the target names of one or more prior
diff --git a/docs/typing.rst b/docs/typing.rst
index 6c9d8a6f..a3e2a3eb 100644
--- a/docs/typing.rst
+++ b/docs/typing.rst
@@ -539,8 +539,9 @@ The program has the following command line options:
 
 .. code-block:: text
 
-   usage: python -m nanobind.stubgen [-h] [-o FILE] [-O PATH] [-i PATH] [-m MODULE]
-                                     [-r] [-M FILE] [-P] [-D] [--exclude-values] [-q]
+   usage: python -m nanobind.stubgen [-h] [-o FILE] [-O PATH] [-i PATH]
+                                     [-L PATH] [-m MODULE] [-r] [-M FILE] [-P]
+                                     [-D] [--exclude-values] [-q]
 
    Generate stubs for nanobind-based extensions.
 
@@ -550,6 +551,8 @@ The program has the following command line options:
      -O PATH, --output-dir PATH    write generated stubs to the specified directory
      -i PATH, --import PATH        add the directory to the Python import path (can
                                    specify multiple times)
+     -L PATH, --lib-path PATH      add directory to shared library search path (can
+                                   specify multiple times)
      -m MODULE, --module MODULE    generate a stub for the specified module (can
                                    specify multiple times)
      -r, --recursive               recursively process submodules
diff --git a/src/stubgen.py b/src/stubgen.py
index 67fbddc9..e551a24d 100755
--- a/src/stubgen.py
+++ b/src/stubgen.py
@@ -1285,6 +1285,16 @@ def parse_options(args: List[str]) -> argparse.Namespace:
         help="add the directory to the Python import path (can specify multiple times)",
     )
 
+    parser.add_argument(
+        "-L",
+        "--lib-path",
+        action="append",
+        metavar="PATH",
+        dest="lib_paths",
+        default=[],
+        help="add directory to shared library search path (can specify multiple times)"
+    )
+
     parser.add_argument(
         "-m",
         "--module",
@@ -1426,6 +1436,7 @@ def add_pattern(query: str, lines: List[str]):
 
 def main(args: Optional[List[str]] = None) -> None:
     import sys
+    import os
 
     # Ensure that the current directory is on the path
     if "" not in sys.path and "." not in sys.path:
@@ -1446,6 +1457,16 @@ def main(args: Optional[List[str]] = None) -> None:
     for i in opt.imports:
         sys.path.insert(0, i)
 
+    if os.name == 'nt':
+        for lib_path in opt.lib_paths:
+            os.add_dll_directory(lib_path)
+    else:
+        lib_env = "DYLD_LIBRARY_PATH" if sys.platform == "darwin" else "LD_LIBRARY_PATH"
+        old_value = os.environ.get(lib_env, "")
+        paths_str = ":".join(opt.lib_paths)
+        if paths_str:
+            os.environ[lib_env] = f"{paths_str}:{old_value}" if old_value else paths_str
+
     for i, mod in enumerate(opt.modules):
         if not opt.quiet:
             if i > 0:
diff --git a/tests/CMakeLists.txt b/tests/CMakeLists.txt
index 6a66f534..9a5ed1fd 100644
--- a/tests/CMakeLists.txt
+++ b/tests/CMakeLists.txt
@@ -143,11 +143,27 @@ target_compile_definitions(inter_module PRIVATE -DSHARED_BUILD)
 target_compile_features(inter_module PRIVATE cxx_std_17)
 target_include_directories(inter_module PRIVATE ${NB_DIR}/include)
 
+# Output inter_module to a separate lib subdirectory to test LIB_PATH functionality
+set_target_properties(inter_module PROPERTIES
+  RUNTIME_OUTPUT_DIRECTORY ${CMAKE_CURRENT_BINARY_DIR}/lib
+  LIBRARY_OUTPUT_DIRECTORY ${CMAKE_CURRENT_BINARY_DIR}/lib
+)
+
 nanobind_add_module(test_inter_module_1_ext NB_DOMAIN mydomain test_inter_module_1.cpp ${NB_EXTRA_ARGS})
 nanobind_add_module(test_inter_module_2_ext NB_DOMAIN mydomain test_inter_module_2.cpp ${NB_EXTRA_ARGS})
 target_link_libraries(test_inter_module_1_ext PRIVATE inter_module)
 target_link_libraries(test_inter_module_2_ext PRIVATE inter_module)
 
+# Generate stub for inter_module_1 to test LIB_PATH functionality
+nanobind_add_stub(
+  inter_module_1_ext_stub
+  MODULE test_inter_module_1_ext
+  OUTPUT ${PYI_PREFIX}test_inter_module_1_ext.pyi
+  PYTHON_PATH $<TARGET_FILE_DIR:test_inter_module_1_ext>
+  LIB_PATH $<TARGET_FILE_DIR:inter_module>
+  DEPENDS test_inter_module_1_ext inter_module
+)
+
 set(TEST_FILES
   common.py
   conftest.py
@@ -177,6 +193,7 @@ set(TEST_FILES
   # Stub reference files
   test_classes_ext.pyi.ref
   test_functions_ext.pyi.ref
+  test_inter_module_1_ext.pyi.ref
   test_make_iterator_ext.pyi.ref
   test_ndarray_ext.pyi.ref
   test_jax_ext.pyi.ref
diff --git a/tests/test_inter_module_1_ext.pyi.ref b/tests/test_inter_module_1_ext.pyi.ref
new file mode 100644
index 00000000..bb2e86b4
--- /dev/null
+++ b/tests/test_inter_module_1_ext.pyi.ref
@@ -0,0 +1,3 @@
+
+
+def create_shared() -> "Shared": ...